Query Re Pensions and Retirement

SallyUK

Morning All
I'm not sure whether I should be on this thread or another one, but here goes.
I work as a Practice Manager in a GP surgery, on a consultancy basis. I have my own Ltd company. I recently took my NHS lump sum, and have a couple of small pension payments each month. Last month, I also became eligible to get my state pension each month.

I'm due to leave the surgery within the next few months, and will therefore have the three small pension payments each month to live on. Total being £1560.

I have some money in the lump sum from the NHS, and it's currently sat in a savings account.

What I would really like to be able to do is to top up the £1560 each month, just so I am comfortable and not have to worry about finances. 

Can anyone suggest a good way of doing this please? Would it maybe be wise to invest some of the lump sum (which is £50K)

Thanks 

eskbanker

Are you basically asking how to generate monthly income from £50K?  If so, how much are you hoping to generate and for how long?

LHW99

Also how close are you to state pension age, and do you need this top-up just until you reach it, or longer term?

eskbanker

LHW99 said:

Also how close are you to state pension age, and do you need this top-up just until you reach it, or longer term?

From OP:  

SallyUK said:

Last month, I also became eligible to get my state pension each month.

Albermarle

You need to have an emergency cash savings fund, to cover unexpected costs, like the central boiler needing replacing, or some expensive work needing on your house ( if you own one).
So at least a part of this £50K ( if that is your only savings) needs to be set aside for those rainy days.
Otherwise I think you will struggle to realise a significant regular amount of income from a fund of this size, without it running down quickly. Personally I would keep it as back up/ for one off expenditures(planned or otherwise) .

Linton

Albermarle said:

You need to have an emergency cash savings fund, to cover unexpected costs, like the central boiler needing replacing, or some expensive work needing on your house ( if you own one).
So at least a part of this £50K ( if that is your only savings) needs to be set aside for those rainy days.
Otherwise I think you will struggle to realise a significant regular amount of income from a fund of this size, without it running down quickly. Personally I would keep it as back up/ for one off expenditures(planned or otherwise) .

I agree with this.  A £50K lump sum sensibly invested could give you perhaps £1700/year inflation linked for the rest of your life, so around £140/month. So not a great difference to your standard of living.  Perhaps you would get more benefit from the occasional one-off expenditure either for emergencies or pleasure.

SallyUK

eskbanker said:

Are you basically asking how to generate monthly income from £50K?  If so, how much are you hoping to generate and for how long?

I am, yes. I'd only need around £500 per month to be comfortable, any more would be nice. 

eskbanker

SallyUK said:

eskbanker said:

Are you basically asking how to generate monthly income from £50K?  If so, how much are you hoping to generate and for how long?

I am, yes. I'd only need around £500 per month to be comfortable, any more would be nice. 

But for how long?  £6K/year from £50K is doable but only by burning through the capital over a fairly short period....